InfoSAWIT, JAKARTA – Vanishing domestic market obligation and export agreement of crude palm oil (CPO) in Indonesia did fulfill vegetable oil needs in the globe which was decreasing in the first place. Oil World analyzed that this significantly contributed to the decreasing CPO price.
In the past 15 years, CPO production in the world gets decreasing trend. Oil World noted, it decreased 0,9% per year and contrast to the average increasing trend of other vegetable oil production. “CPO production in Indonesia and Malaysia significantly decrease under its potential and limits export supply,” CEO Oil World, Thomas Mielke said, as quoted from MPOC.
In India, vegetable oil imports in October 2021 to February 2022 escalated to be 6,08 million tons. Soybean and radish process in the country got slower in the past few months because of the increasing dependence on vegetable oil imports. “It gets more expensive because of significant demand allotment in vegetable oil markets in India this season,” Thomas said. (T2)